- Gary Gensler’s resignation could lead to significant changes in cryptocurrency regulation
- A new SEC leader might speed up approvals for crypto products like ETFs and reduce restrictive regulations
- Such a shift could boost investment in cryptocurrencies but may also introduce risks and volatility
It’s pretty standard practice for the SEC chairman to step down when there’s a change in the White House.
With Biden’s retirement, the U.S. presidential race has received yet another shakeup that, it seems, could favor Donald Trump. Should the Republican candidate win, the SEC could radically change its stance on cryptocurrencies.
Is a Pro-Crypto Administration on the Horizon?
According to Markus Thielen, founder of 10X Research, there’s a good chance we’ll see a pro-crypto administration in the White House. Gary Gensler, the current chairman, whose term officially ends on June 5, 2026, could leave office as early as January or February 2025.
Looking at what had happened, former SEC Chair Mary Jo White, appointed by then-President Barack Obama, resigned in January 2017 after the election of Donald Trump. Similarly, Christopher Cox, appointed by George W. Bush, left office in January 2009 when Obama took office.
In any case, this is a practice but not an obligation, so Gensler could remain in his post until 2026, even under a Trump presidency. But the uncertainty remains.
Impact on Crypto if SEC Chair Steps Down
If Gary Gensler steps down as chairman of the SEC, it could have a big impact on the crypto world. A new SEC chairman, especially one from a more crypto-friendly administration, could lead to more favorable regulation and a more open approach to crypto products.
This could mean faster approval of ETFs and other cryptocurrency-related financial instruments, fewer restrictive regulations, and more support for innovation in the sector.
A more pro-crypto SEC could lead to a lot more investment in cryptocurrency, attract new companies and startups to the sector, and get more people on board with it.
It’s also worth mentioning that these changes could have some risks attached, like a lack of investor protection and increased market volatility. Either way, how the SEC regulates cryptocurrency will be a big factor in where the industry goes from here.
